29) A manufacturing company has actual overhead of $570,000, budgeted overhead of $620,000, and budgeted 18,000 direct labour hours. Management believes that direct labour hours are the best allocation base to use for allocation of overhead. Actual direct labour hours were 20,000 hours.
Assuming that the company used normal costing methods for allocation, and has the following account balances in its general ledger, what are the adjustments for each account using the proration method based on the amount of manufacturing overhead included in each account balance before proration?
Cost of Goods Sold$1,500,000$330,000________
30) The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine hours in Department 100 and 8,000 direct manufacturing labour hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:
Department 100Department 200
Direct materials purchased on account$110,000$177,500
Direct materials used 32,50013,500
Direct manufacturing labour 52,50053,500
Indirect manufacturing labour 11,0009,000
Indirect materials used 7,5004,750
Lease on equipment16,2503,750
Job A incurred 800 machine hours in Department 100 and 300 manufacturing labour hours in Department 200. The company uses a budgeted indirect cost allocation rate for applying overhead to production.